Your net worth is an important, simple way to measure your financial health. If you earn $45,000 a year, have worked for 15 years, but only have a net worth of $5,000, it’s clear that you haven’t been able to save enough to establish a solid foundation for yourself. Our Net Worth calculator makes it easy. If you don’t know what Net Worth means, start here first.
What’s A “Good” Net Worth Number?
One of our favorite books about money is The Millionaire Next Door. If you plan to become a millionaire, you need to read it ASAP. We also love the book’s simple benchmark for your net worth.
It has a simple formula for a net worth value you should shoot for, which is: Net Worth Target = Age X Pre-Tax Income / 10. Another great benchmark is: Years Worked X Avg. Salary X 0.25.